Clorox sells Aplicare, as consumer companies reshape portfolios
The Clorox Co. (NYSE: CLX) has sold the swabstick Aplicare brand to Medline Industries. Clorox and other consumer companies have been actively reshaping their portfolios through M&A to focus on core business lines.
Aplicare produces skin infection prevention products, iodine bottles and disinfectant towels. Medline, located in Northfield, Illinois, makes medical supplies ranging from bandages to wheelchairs.
"Selling Aplicare, which was part of our professional products business, was the result of our periodic strategic assessment of our global portfolio," says Clorox CEO Benno Dorer. He added that the sale doesn't change Clorox's "strategic focus" on the company's professional products division. Financial terms of the Aplicare sale were not disclosed. Aplicare generated about $46 million in sales through June 30. Clorox purchased Aplicare in 2012.
Clorox began divesting assets in 2010, when it sold its auto care business, which owns the Armor All brand, to Avista Capital for $780 million. Lately, the Oakland, California-based company has been focusing on growing its health and wellness business through acquisitions. In 2016, Clorox purchased probiotics maker Renew Life Holdings Corp. from Swander Pace Capital for about $290 million.
Stratgeic buyers in the consumer sector have been divesting assets in an effort to boost profitability. Conagara Brands Inc. (CAG) agreed to sell the Wesson oil brand to J.M. Smucker Co. (NYSE: SJM) for $285 million; Church & Dwight Co. (NYSE: CHD) sold the Cameo copper and brass cleaner, Snobol toilet bowl cleaner and the Parsons’ ammonia brands to Brillo owner Armaly Brands; and Newell Brands Inc. (NYSE: NWL) sold its winter sports unit to Kohlberg & Co.